Andalusia Mayor proposes sales tax increase - WSFA.com Montgomery Alabama news.

Andalusia Mayor proposes sales tax increase

Posted: Updated:
  • More newsMore>>

  • 10 Things to Know for Today

    10 Things to Know for Today

    Wednesday, September 17 2014 7:22 AM EDT2014-09-17 11:22:21 GMT
    Your daily look at late-breaking news, upcoming events and the stories that will be talked about Wednesday:More >>
    By The Associated Press Your daily look at late-breaking news, upcoming events and the stories that will be talked about today:More >>
  • New IS video warns US over Iraq deployment

    New IS video warns US over Iraq deployment

    Wednesday, September 17 2014 6:54 AM EDT2014-09-17 10:54:33 GMT
    The militant Islamic State group has released a video warning the United States that fighters await it in Iraq if President Barack Obama sends troops there, as he and his top general said may happen.More >>
    The militant Islamic State group has released a video warning the United States that fighters await it in Iraq if President Barack Obama sends troops there, as he and his top general said may happen.More >>
  • Student hit by car in Montgomery continues to recover

    Student hit by car in Montgomery continues to recover

    Wednesday, September 17 2014 6:40 AM EDT2014-09-17 10:40:24 GMT
    A Montgomery student hit by a car after school is showing signs of improvement after weeks in the hospital. The community has rallied around his family as he continues to heal. The accident outside CapitolMore >>
    A Montgomery student hit by a car after school is showing signs of improvement after weeks in the hospital. The community has rallied around his family as he continues to heal. The accident outside Capitol Heights Middle School in Montgomery shed more light on safety concerns for students in the area. More >>
ANDALUSIA, AL (WSFA) -

Andalusia Mayor Earl Johnson is proposing an increase in the city's sales tax from 2% to 3.5%, which would bring  the total sales tax consumers pay in the city to 9.5%. The money would be used for infrastructure improvements, education and retiring debt.

The city received at $8.6 million ATRIP grant for improvements to South Three Notch Street, but has to come up with $2.5 million in matching funds. The mayor believes the sales tax increase is the best way to raise the revenue.

"We could borrow the money which would add to our indebtedness or raise the sales tax to the state's average, which would enable us to raise the money as we go, and allow us to start paying our debt down, which I think is a win, win for everyone," Johnson said.

0.5 percent of the increase would be earmarked for Andalusia City Schools, for help with a $6.5 million project to construct a junior high school on the high school campus and a new building for sixth graders at the Andalusia Elementary School campus.

The city council could vote on the plan as soon as May 21st.

Copyright 2013 WSFA 12 News.  All rights reserved.

Powered by WorldNow